Getting the most for your company when you decide to sell

Exit planning is both necessary and important. The purpose of the exit planning process is to understand the:

  • Reasons for exit as this may impact the routes available for exit.
  • Business owner's value expectations and requirements.
  • Range of valuations that can be achieved.

It is necessary to create a strategy, supported by a business action plan, to realise the value. The implementation will focus on two main issues:

  • Transferring the value of the company into the business and away from the owner where the owner may have 'been the business'. This situation can make an exit much harder.
  • Shaping the business for sale as set out in the exit plan.

Back to the top

Selling a business and getting the most for it

The statistics reveal that:

  • 80% of businesses for sale never sell.
  • Businesses that go straight to market sell for only 70% or 80% of the original asking price.

The key reasons for this failure are:

  • Unrealistic value expectations and timescales.
  • Poor preparation within the business prior to the sale.
  • Unwillingness to use professional advisors.
  • Inadequate resources allied to the exit process.

Selling a business is a sales process. More weight should be placed on actual selling than on the legal or financial aspects.

Back to the top

Aquiring a business that will be worth the investment

According to a Harvard Business Review report, the failure rate of acquisitions sits between 70% and 90%.

The main reasons for failure:

  • Lack of proper strategic thinking for an acquisition.
  • Poor, or no, preparation by the management team making the acquisition.
  • Acquirer is not properly prepared financially.
  • Paying too much.
  • Unwillingness to use professional advisors.
  • Inadequate resources allied to the acquisition process.

There are four factors that need to be right when acquiring a business: strategy, the people, finance and the legal agreement. Successful acquisitions always have all four of these things soundly in place.

To find out more please contact:

Richard Olsen on 0203 327 0567  or email: [email protected]

Back to the top

Terms & Conditions | Privacy Policy | Cookie Policy